Gift Focus inc Attire Accessories - Page number 36 - May/June 2021

36 BUDGET OVERVIEW Martin McTague, FSB National Vice Chair, Policy and Advocacy, looks at the implications of the 2021 budget Small businesses and the self-employed are the bedrock of our economy, but in the last year, many have fought tooth and nail to stay afloat. It’s been an uncertain time – but the government has been promising to do “whatever it takes” to protect livelihoods and return our hammered economy to growth. That’s why the 2021 budget was always going to be a momentous one. SELF-EMPLOYMENT Many of the newly self-employed were shut out of support during the height of the pandemic, so it was positive to see the Chancellor announce that an extra 600,000 are eligible to claim. This big step forward marks a win for FSB’s campaign and will be a tremendous relief to many, providing a chink of light at the end of what felt like a never-ending tunnel. On the downside, company directors who have been left in a state of financial limbo for the last year have still been left out in the cold. We have outlined a workable Directors Income Support Scheme (DISS) alongside experts in this field and it’s disappointing to see that this has been overlooked once more. FURLOUGH The job retention scheme was the saving grace for millions when the pandemic hit last March, so its extension will provide some much-needed breathing space as the UK weans itself off the furlough scheme. It means business owners can focus on the future with the flexibility they need to get back on two feet. However, at a time where we should solely be focused on recovery, there are some drawbacks. Piling wage costs onto national insurance and pension contributions from July will put many small employers under serious pressure. The absence of a cut to employer NICs or a job retention bonus is disappointing to see. VAT CUT AND SUPPLY CHAINS Small businesses will also be heartened by the news that those in the retail, leisure and hospitality sectors will be provided extra help in the form of a discount on business rates and a lower VAT rate. But it’s not a panacea for everyone. As our economy comes back to life, those in supply chains must benefit from these measures, too. CONCLUSION This year has thrown challenges we never could have expected and our economy is in a more fragile state than ever before. But we’ve been bowled over by the resilience of our small business and self-employed community. Thanks to them and government support, Covid-19 won’t sound the death knell for our economy. The Chancellor still has some loose ends to tie off, but as Budgets go, this was a good start. ABOUT FSB As the UK’s business support group, FSB is the voice of the UK’s small businesses and the self-employed. Established over 40 years ago to help its members succeed in business, FSB is a non-profit making and non-party political organisation that’s led by its members, for its members. As the UK’s leading business campaigner, FSB is focused on delivering change which supports smaller businesses to grow and succeed. FSB offers members a wide range of vital business services, including access to finance, business banking, legal advice and support along with a powerful voice in Government. Each year FSB also runs the UK’s Celebrating Small Business Awards. More information is available at www.fsb.org.uk. Yo u can follow us on twitter @fsb_policy and on Instagram @fsb_uk.